First Data 2007 Annual Report Download - page 106

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Additional Information
The pro forma impact of all 2007 acquisitions on net income was not material.
In January 2008, the Company entered into a joint venture with Allied Irish Banks p.l.c. ("AIB"), of which the Company owns 50.01%. The joint
venture will provide card acquiring services in the Republic of Ireland, the United Kingdom and elsewhere in Europe. AIB will be consolidated and reported
in the First Data International segment.
2006 Acquisitions
The Company created a joint venture in January 2006 with Banca Nazionale del Lavoro ("BNL") to provide merchant acquiring services for Italian
merchants. The Company has a 49% ownership interest in the alliance and accounts for it under the equity method of accounting within the First Data
International segment.
In March 2006, the Company acquired substantially all the assets of ClearCheck, a full-service provider of return check management systems for major
retailers and supermarkets across the United States. ClearCheck is reported as part of the First Data Commercial Services segment.
In April 2006, the Company acquired the remaining interest of approximately 20% in its First Data Korea subsidiary and increased its ownership
interest in its consolidated subsidiary OMNIPAY from approximately 47% to approximately 69% through a buyout of management shareholders. Both
entities are part of the First Data International segment.
In June 2006, the Company acquired FDD, a German processor of cashless, card-based payment transactions. FDD is reported as part of the First Data
International segment. The aggregate purchase price allocation resulted in $53.2 million in identifiable intangible assets, which were being amortized over
seven to 23 years, and goodwill of $1.9 million. As part of the acquisition, the Company acquired easycash, a network solutions provider and a 100% owned
subsidiary of FDD. As a condition for approval of the acquisition of FDD by FDC, the German Federal Cartel Office required that FDC sell the easycash
subsidiary of FDD. easycash is involved in the business of point-of-sale terminal deployment and competes directly with FDC's subsidiary TeleCash GmbH
and Co. KG. easycash was sold in the fourth quarter 2006 for a purchase price equal to its allocated fair value resulting from the FDD acquisition.
In August 2006, the Company acquired Peace, a Customer Information System product company that develops advanced software for managing utility
billing and customer care. Peace is reported as part of the First Data Financial Institution Services segment.
In December 2006, the Company acquired First Data Cono Sur, a provider of card issuing and merchant acquiring services in Argentina and Uruguay.
The aggregate purchase price allocation resulted in identifiable intangible assets of $96.9 million, which were being amortized over seven to 11 years, and
goodwill of $81.7 million. First Data Cono Sur is reported as part of the First Data International segment.
The aggregate cash paid during the year ended December 31, 2006 for the alliance and other acquisitions was approximately $287.5 million, net of cash
received of $47.9 million. The aggregate purchase price allocation for these transactions resulted in $187.7 million in identifiable intangible assets, which
were being amortized over five to 23 years, and goodwill of $159.2 million. The identifiable intangible assets of the acquisitions that occurred in 2006 are
contemplated in the preliminary purchase price allocation associated with the merger discussed in Note 2.
The pro forma impact of all 2006 acquisitions on net income was not material.
2006 Dispositions
In July 2006, the Company sold the majority of its ownership interest in its subsidiaries PPS and IDLogix to five national financial institutions to form
Early Warning Services, LLC. Due to Early Warning Services, LLC being structured as a limited liability company, FDC's remaining interest in Early
Warning Services, LLC is accounted for using the equity method of accounting and is reflected in the "Investment in affiliates" line item of the Consolidated
Balance Sheets. Refer to Note 19 for additional discussion.
In November 2006, the Company sold its subsidiary Taxware to ADP(R) Employer Services, a division of Automatic Data Processing, Inc. Refer to
Note 19 for additional discussion.
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